In this paper, the authors investigate about RFID technology. RFID stands for Radio Frequency IDentification. As the term itself denotes that, it is a system of identification which uses radio frequency to communicate. The basic components of RFID system are the tag and reader. Tag is the device used to identify the object which is to be tracked. The device that identifies the tag and reads the information stored on it is called reader. This information is further carried to a system which acts as an interpreter between the reader and applications.